In a move that could reshape the relationship between traditional banking and digital assets, Basler Kantonalbank (BKB) — a Swiss government-backed cantonal bank established in 1899 — announced on August 3, 2020 that it plans to offer bitcoin and cryptocurrency trading and custody services to its clients. The announcement marks the first time a state-backed commercial bank in Switzerland has committed to providing direct cryptoasset services.
TL;DR
- Basler Kantonalbank (BKB) will launch BTC and altcoin trading and custody via subsidiary Bank Cler by 2021
- First Swiss state-backed commercial bank to offer crypto services directly
- Alain Kunz appointed as head of digital assets at Bank Cler
- Driven by massive demand from younger customers for digital asset products
- Bitcoin traded at $11,246 with a market cap exceeding $207 billion on the announcement day
A 121-Year-Old Bank Embraces Bitcoin
Basler Kantonalbank, one of 24 cantonal banks serving Switzerland’s 26 cantons, revealed that it will roll out cryptocurrency trading and custody through its subsidiary Bank Cler. While Bank Cler operates under a separate banking license, BKB holds a majority stake and uses it as its digital competence centre — making it the natural vehicle for a crypto-focused initiative.
Natalie Waltmann, a spokeswoman for Bank Cler, confirmed the plans: “We will introduce an offering for trading and custody of digital assets. Bank Cler is the digital competence centre of our company, to which parent BKB also belongs. We are also interested in offering crypto trading services.”
Young Customers Drive the Demand
The decision wasn’t made in a vacuum. BKB noted that it has been experiencing significant demand for digital asset products from its younger client demographic — a cohort that has grown up with technology and views cryptocurrency as a natural component of a diversified financial portfolio.
To lead the initiative, Bank Cler has brought on Alain Kunz as head of digital assets. Kunz, a recognized crypto expert in the Swiss financial scene, will be responsible for building out the trading and custody infrastructure and ensuring regulatory compliance across the bank’s crypto offerings.
Switzerland’s Crypto-Friendly Regulatory Environment
The announcement fits squarely within Switzerland’s broader embrace of digital assets. The country has established some of the most amenable cryptocurrency regulations in the world, creating an environment where banks and financial institutions can engage with digital assets without the regulatory uncertainty that plagues other jurisdictions.
Earlier in 2020, the Swiss town of Zermatt made headlines by becoming one of the first municipalities to accept bitcoin for tax payments. The progressive stance from both regulators and local governments has made Switzerland a hub for crypto innovation, attracting companies and talent from around the world.
Banking Access Remains a Challenge
Despite Switzerland’s welcoming regulatory framework, digital asset companies have historically struggled to access traditional banking services. Many crypto businesses find it difficult to open and maintain corporate bank accounts, creating an ironic situation where crypto-friendly regulations don’t always translate to banking-friendly practices.
BKB’s entry into the space could help change that dynamic. When a government-backed bank begins offering crypto services, it sends a powerful signal to the broader banking sector that digital assets are a legitimate and bankable asset class. The move may encourage other cantonal banks and private institutions to follow suit, potentially solving the banking access problem that has constrained the Swiss crypto ecosystem.
Bitcoin’s Bullish Momentum Continues
The announcement came during a period of renewed optimism in the bitcoin market. BTC was trading near $11,246 on August 3, having briefly touched $12,000 the previous day before a sharp correction. The price action was supported by a confluence of institutional signals: Bakkt futures had just set a new volume record with 11,500 contracts, CME open interest reached $724 million, and Fidelity Digital Assets had released a report framing bitcoin as a legitimate store of value.
Ethereum also showed strength, trading at $386.30 with a 20% weekly gain, while the total cryptocurrency market capitalization continued its recovery from the March 2020 crash.
Why This Matters
When a 121-year-old government-backed bank decides to offer bitcoin services, it represents a seismic shift in institutional attitudes toward cryptocurrency. It’s one thing for a crypto-native company to provide trading and custody — it’s another entirely when an institution with deep regulatory ties, established trust, and state backing makes the same commitment.
For blockchain technology adoption, the implications are substantial. Bank Cler’s move could serve as a template for other traditional financial institutions, demonstrating that crypto integration is not only possible within existing regulatory frameworks but increasingly demanded by customers. As more banks enter the space, the infrastructure supporting digital assets will continue to mature, bridging the gap between traditional finance and the decentralized future.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.
BKB has been around since 1899 and now theyre offering crypto. swiss cantonal banks are basically state-guaranteed, this is as legit as it gets for institutional adoption in 2020
funny how a 121 year old bank moves faster than most ‘crypto-native’ companies. bank cler going direct custody is huge
swiss state guarantee on deposits plus crypto custody. institutional money was always going to come through tradfi rails
state guarantee on deposits is the key detail most people miss. swiss cantonal banks cant go bankrupt in the traditional sense, the canton backs them
zurich_night the cantonal guarantee is the real story here. depositors literally cannot lose their funds if the canton backs the bank. US crypto custoders cant offer anything close
zurich_night_ the cantonal guarantee detail is massive. depositors literally cannot lose funds. US crypto custodians cant offer anything close to that
Alain Kunz heading digital assets at Bank Cler is a solid hire. guy knows the space. BTC at $11,246 when this dropped and people still doubted the bull case
Alain Kunz from Crypto Valley to Bank Cler. smart hire, guy built the Zug ecosystem basically
Kunz building the Zug ecosystem then moving to Bank Cler is basically the crypto-to-tradfi pipeline working in reverse. rare W for institutional hiring
zurich_btc_ Alain Kunz built the entire zug crypto valley ecosystem then went to Bank Cler. the guy basically wrote the playbook for crypto-to-tradfi integration in switzerland
a 121 year old cantonal bank offering crypto trading before most US banks even had a crypto desk. swiss financial regulation is miles ahead
alpine_btc the irony is US banks spent years lobbying against crypto custody while swiss banks just built it. now theyre all playing catchup
Bank Cler targeting younger clients with BTC trading in 2020 was smart. every boomer bank in the US was still calling it a scam that year
Thierry B. every boomer bank in the US was calling BTC a scam in 2020 while a 121 year old Swiss state backed bank was building custody rails. the gap between Swiss and US crypto banking is embarrassing
BKB was 121 years old and moved faster on crypto than JP Morgan. swiss cantonal banks are state guaranteed so the custody risk is basically zero. US banks spent 4 more years lobbying against this
zurich_btc_ BKB moved faster because swiss banking already solved custody for gold and fiat. adding a bitcoin key pair is trivial when your legal framework supports it
canton_obsessed_ swiss banking already solved gold custody. adding BTC keys was trivial from a legal framework perspective. US banks spent 4 more years lobbying
zurich_btc_ the cantonal guarantee is the key detail. BKB depositors literally cannot lose funds because the canton of Basel backs them. US crypto custodians cant offer anything close to sovereign backing
zurich_night_ cantonal guarantee means the canton literally covers losses. BKB depositors have stronger protection than any US crypto custody arrangement. swiss figured this out in 1899
Bank Cler rebranded to neon before any of this shipped right? the retail brand changed twice while the crypto custody plan stayed on the roadmap. commitment over branding
Alain Kunz at Bank Cler was the hire that made this credible. the guy built Crypto Valley in Zug. of course he was going to push trading and custody
Florian Mader Kunz built the Zug ecosystem from nothing. Bank Cler getting him was a signal that Swiss retail banking was taking crypto seriously while US banks were still writing anti-crypto lobby checks
Kunz went from building Zug Crypto Valley to Bank Cler. thats the crypto-to-tradfi pipeline working exactly how it should. most crypto natives just stay in echo chambers
zug_pipeline_ Kunz going from Zug to Bank Cler is the reverse of every other crypto hire. usually its tradmi execs jumping to crypto firms for the paycheck
zug_pipeline_ the BKB move was smart because swiss cantonal banks have sovereign backing. US crypto custodians cant offer anything close to that level of depositor protection
Bea H. US custodians cant match the cantonal guarantee because theres no federal equivalent. FDIC doesnt cover crypto and SPDI in Wyoming is still untested